Adopt Mark Triple Net Lease Agreement For Free

For property investors, who want to own a revenue-generating property and pay as little attention to it as possible, a triple net lease allows them to offload the work of managing things like maintenance and taxes to the renter.

Owning one NNN property or a mix of properties with different tenant types, lease terms, asset classes, and locations can balance risk and reward, provide tens of thousands of dollars of responsibility-free monthly income, and offer the lowest possible risk factor with the highest potential internal rate of return ( ...

Benefits of a Triple Net Lease (NNN) NNN leases also tend to come with protections against tax and insurance increases with the inclusion of caps placed on certain values. As far as landlords are concerned, triple net leases are a low-risk and reliable source of income that have few overhead costs.

The main disadvantage of a triple net lease in commercial real estate is the higher monthly costs as opposed to those in double or single net lease structures. Furthermore, since tenants become responsible for taxes, this puts them on the hook for any tax-related liabilities such as fines and penalties.

Negotiating a Triple Net Lease: Tenant Side Discounted rent and short-term rental abatements. Tenant improvement allowance. Lower percentages of annual rent increases. Lease extension and renewal options. Rights to building signage and parking requirements.

NNN ? Triple Net ?This type of lease rate includes the base rental rate plus the three N's. One ?N? stands for property taxes, one for property insurance, and the final ?N? stands for common area maintenance (CAMs).

The biggest risk with a net lease is that if the main tenant default or declare bankruptcy, it can be incredibly difficult to find a new tenant to replace the original tenant. This is especially important in a property that is encumbered with a loan.